Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Non-Deal Roadshow (August 2023)
31 slides from Cholamandalam Investment And Finance's roadshow presentation, Aug 16, 2023
Slide 1: Intimation of schedule of Analyst/Investor Meet
August 16, 2023 The Secretary The Secretary National Stock Exchange of India Limited BSE Ltd. Capital Market – Listing, Exchange Plaza, 25th Floor, Phiroze Jeejeebhoy Towers 5th Floor, Plot No. C/1, G Block Dalal Street, Fort, Bandra‐Kurla Complex, Bandra (E), Mumbai 400 001 Mumbai 400 051 NSE SCRIP
Slide 2: Corporate Presentation August 2023
To be updated CIFC Business Snapshot –Investment Cholamandalam Q1 FY24and SL Finance Company Limited Corporate Presentation August 2023 *Includes both on-roll & off-roll 1
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”) have been prepared by and are the sole responsibility of the Cholamandalam Investment and Finance Company Limited (“Company”). This Presentation contains selected information about the activities of the Company as at the d
Slide 4: Table of contents
Table of contents 1 Brief Snapshot About Cholamandalam Investment and Finance 2 Company Limited (CIFCL) – Key Highlights 3 Strategies 4 Annexure 3
Slide 5: Brief Snapshot
Brief Snapshot About Cholamandalam Investment and Finance Company Limited – Key Highlights Strategies Annexure 4
Slide 6: CIFCL – At a glance (Q1FY24)
CIFCL – At a glance (Q1FY24) Sustained growth Multi-pronged Maintaining healthy Consistently delivering at scale distribution strategy asset quality robust shareholder returns INR 1,14,795.62 Cr 1,204 / 48,127 3.06% INR 726.01 Cr Business AUM Branches/ Employees* Gross Stage 3 PAT INR 20,014.52 Cr 2
Slide 7: Evolved into a Fast Growing, Scaled Up & Diversified NBFC
Evolved into a Fast Growing, Scaled Up & Diversified NBFC FY 1979 - 2010 FY 2011 - 2015 FY 2016 - 2021 FY 2022- 2024 • Commercial Vehicle • Tractor Financing • Consumer & Small Finance • Home Loan (HL) Enterprise Loan (CSEL) Consistently • Gaadi Bazaar dealer • Equipment Leasing • Construction Equip
Slide 8: About Cholamandalam – Key Highlights
Brief Snapshot About Cholamandalam Investment and Finance Company Limited – Key Highlights Strategies Annexure 7
Slide 9: Key Highlights
Key Highlights Strong Management Team Pan-India Geographical Presence Backed by an Experienced Board 1 2 8 Granular Retail Franchise with Environmental, Social & Well Diversified Portfolio mix Governance as a Core Principle 3 7 Track Record of Consistent Clear Technology Focus driving Financial Perf
Slide 10: Pan-India Geographical Presence
1 Pan-India Geographical Presence Well distributed Pan-India Branch presence Strong Distribution Strength across Products Leveraging Existing Pan India Presence – expanding product suite 29 / 5 1,204 across existing branches 7 States / UT’s Branches Branch presence – Chandigarh (2) products 17 As on
Slide 11: Granular Retail Franchise with well Diversified Portfolio mix
Granular Retail Franchise with well 2 Diversified Portfolio mix Clear focus on Middle India – Comprehensive product Progressively diversifying Disbursement Mix proposition product mix (% of AUM) VF LAP HL New Businesses AUM VF LAP HL New Businesses Low (INR Cr) Industry 8% 7% 1,14,795.62 Q1FY24 62%
Slide 12: Track Record of Consistent Financial Performance
3 Track Record of Consistent Financial Performance Assets Under Management Disbursement Net Income INR Cr INR Cr INR Cr CAGR: 59.84% CAGR:20.25% 7,229.23 114,795.62 CAGR: 23.35% 106,498.33 66,531.93 5,839.95 4,999.65 81,925.17 35,489.59 76,906.73 26,042.63 2,126.53 1,640.06 69,996.38 20,014.52 13,32
Slide 13: Vehicle Finance - Delivering growth amidst competitive intensity
Vehicle Finance - Delivering growth amidst competitive intensity Focus Areas AUM Growth Disbursement Growth INR Cr INR Cr Focus continues to be on retail customers especially in smaller towns and rural areas 39,699.28 CAGR: 15.23% CAGR: 40.02% 71,064.55 66,937.84 Caters to SRTOs, Medium Operators 25
Slide 14: Along with consistent profitability and returns
….. Along with consistent profitability and returns Net Interest Margin Profit Before Tax INR Cr 8.95% CAGR: 34.39% 8.89% 8.42% 2,243.00 8.06% 1,999.28 7.23% 1,241.99 471.61 498.68 FY21 FY22 FY23 Q1FY23* Q1FY24* FY21 FY22 FY23 Q1FY23 Q1FY24 Losses & Provisions RoA – PBT 2.55% 4.06% 3.84% 2.10% 3.54%
Slide 15: LAP - Phygital model focused on capitalizing existing network
LAP - Phygital model focused on capitalizing existing network Focus Areas AUM Growth Disbursement Growth INR Cr INR Cr Over 80% of the book is financed 22,865.90 against Self-Occupied residential CAGR: 20.87% 21,587.75 CAGR: 60.13% 9,299.13 property as collateral 16,794.78 17,674.70 5,536.47 14,777.
Slide 16: Home Loans: Focus on higher yielding segment of affordable housing
Home Loans: Focus on higher yielding segment of affordable housing Focus Areas AUM Growth Disbursement Growth INR Cr INR Cr Operates from 553 locations(1) (incl. co- located branches). Added 385 locations 3,830.03 9,528.01 CAGR: 57.59% since FY21(1) CAGR: 39.46% 8,451.43 5,589.73 5,938.05 4,345.29 1
Slide 17: New Businesses: Focus on addressing MSME & Consumer Finance needs
New Businesses: Focus on addressing MSME & Consumer Finance needs of Middle India Consumer and Small Enterprise Small & Medium Enterprise Loans Secured Business and Personal Loan Loans Offers SME loans for working capital & Offers unsecured loans to self- Present in 325 locations (co-located) capex
Slide 18: Robust Underwriting Practices Driving Strong Asset Quality
Robust Underwriting Practices Driving 4 Strong Asset Quality Robust Asset Quality Data – led underwriting practices Gross Stage 3 Net Stage 3 PCR 44.27% 46.00% 45.40% Data driven decision making with 39.67% strong analytics/tech at the backend 4.37% 3.96% Minimal manual intervention with 3.01% 3.06%
Slide 19: Strong Liability Franchise
5 Strong Liability Franchise Capital Adequacy Credit Rating (As of June 30,2023) CRAR 19.07% 19.62% 17.13% 17.44% ICRA Limited 3.93% 3.13% 2.35% 2.30% India Ratings 15.14% 16.49% 14.78% 15.14% & Research AA+/Stable FY21 FY22 FY23 Q1FY24 CARE Edge Tier 1 Tier 2 Rating Borrowing Mix – Instrument type*
Slide 20: Customer focused digital transformation
6.a Customer focused digital transformation Diverse Loan Management Digital Platform for Digital Lending User friendly apps Systems Vehicle Ecosystem Partnerships with chatbot assistant 10+ fintech Yuva chatbot Multiple Loan Management Systems Gaadi Bazaar Chola One app partnerships Customized LMS S
Slide 21: Driving Efficiency & Performance through Technology Focussed Approach
Driving Efficiency & Performance through 6.b Technology Focussed Approach DEPLOYING KEY SYSTEMS PREDICTIVE MODELLING CIFCL has deployed key tech systems such as Reliance on artificial intelligence and analytical LMS, CMS & DMS across its businesses platforms to build predictive models across credit,
Slide 22: Environmental, Social & Governance
7 Environmental, Social & Governance Targets Achievements EV loan disbursements increase by 5% Y-o-Y from EV loan disbursements were INR 114.22 crore in 2023-25 FY23 as against INR 13.03 crore in FY22 Information Security Management System (ISMS) – This is underway and in progress for completion ISO
Slide 23: A Diverse and Experienced Board
8 A Diverse and Experienced Board Mr. N. Ramesh Rajan Mr. Vellayan Subbiah Non-Executive - Independent Director Chairman & Non-Executive Director • 40+ years of exp. in audit and finance • Has over 25 years of experience in the varied fields of consulting, • Chairman of Indo National Limited and in
Slide 24: Strategies
Brief Snapshot About Cholamandalam Investment and Finance Company Limited – Key Highlights Strategies Annexure 23
Slide 25: Strategies
Strategies Auto Ecosystem SME Ecosystem Consumer Ecosystem E2E ecosystem covering OEMs, dealers, brokers, One-stop shop for SMEs for all their needs: Financial services marketplace for consumers customers and mechanics focusing on services Financial services (e.g. loans, insurance, Payment across le
Slide 26: Annexure
Brief Snapshot About Cholamandalam Investment and Finance Company Limited – Key Highlights Strategies Annexure 25
Slide 27: Consolidated & Standalone Profit & Loss Statement
Consolidated & Standalone Profit & Loss Statement Consolidated Standalone Profit & Loss statement (INR Cr) FY21 FY22 FY23 Q1FY24 FY21 FY22 FY23 Q1FY24 Interest Income 9,224.77 9,567.35 12,082.58 3,850.84 9,224.16 9,566.81 12,082.18 3,849.17 Fee Income 269.39 472.54 650.70 191.88 206.85 383.74 524.37
Slide 28: Standalone Balance Sheet
Standalone Balance Sheet Standalone Standalone Particulars (INR Cr) Particulars (INR Cr) FY21 FY22 FY23 FY21 FY22 FY23 Cash and Cash equivalents 1,447.85 2,657.88 910.29 Derivative financial instruments 127.42 169.56 134.27 Bank Balance other than above 3,784.03 1,562.20 2,051.13 Payables 595.06 802
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Consolidated Particulars (INR Cr) Particulars (INR Cr) FY21 FY22 FY23 FY21 FY22 FY23 Cash and Cash equivalents 1,480.36 2,698.84 911.85 Derivative financial instruments 127.42 169.56 134.27 Bank Balance other than above 3,799.41 1,603.00 2,095.25 Payables 641.
Slide 30: Glossary of Terms
Glossary of Terms Abbreviation Full Form Abbreviation Full Form 2W 2-Wheeler Loans LAP Loans Against Property 3W Three-Wheeler LCV Light Commercial Vehicle API Application Programming Interface LI Life Insurance AUM Assets Under Management LMS Loan Management System CC Cash Credit MF Mutual Funds CE
Slide 31: Thank You
} Chola i murugappa THANK YOU
Cholamandalam Investment and Finance Company — Non-Deal Roadshow (August 2023) on 6ix